Trading app Robinhood late on Friday restricted purchases of 50 different stocks
List included meme stock GameStop but also General Motors and Starbucks
It followed a wild week of trading fueled by anti-hedge fund Reddit insurgency
It became clear that Robinhood was under severe strain with its cash reserves
Company is required to place deposits with clearing houses to cover trades
Robinhood said Saturday its deposit requirements increased ten-fold this week
Company tapped credit lines for $600M and received $1B investor bailout
New York: Reddit investors have discovered silver, with everything from silver miners, silver ETFs and the actual price of the physical metal itself soaring.
The first signs came late Wednesday, when comments appeared on internet chatroom r/wallstreetbets - the same investor board that started the wild short squeeze in Gamestop Corp. and other companies. The comments centered on iShares Silver Trust, the biggest exchange-traded instrument backed by the metal, calling it THE BIGGEST SHORT SQUEEZE IN THE WORLD, and citing banks manipulating gold and silver prices.
Precious metals have long been the home of conspiracy theorists ranting against central banks and big government, which may make it fertile ground for retail investors rage against the financial machine. While commodities markets are hardly immune from wild swings, they typically have a much higher barrier to entry, so squeezes tend to come from actions by institutional, rather than retail, investors.
Silver price is latest market hit by Reddit day-trader frenzy
Creative Commons image from pxhere.com.
Reddit investors have discovered silver, with everything from silver miners, silver ETFs and the actual price of the physical metal itself soaring on Thursday.
Spot silver soared as much as 6.8%, the biggest jump since August. IShares Silver Trust, the biggest exchange-traded instrument backed by the metal, rose as much as 7.2%, the biggest intraday gain since August.
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“The GameStop/AMC/Reddit mania is spilling over to silver and gold is getting a lift. The economic data this morning have become a moot point,” Bob Haberkorn, senior market strategist at RJO Futures said by phone. “This isn’t predicated on any global events, it’s just people on a message board putting all their guns towards the precious metals markets.”
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